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The Company has already commenced mine planning work on the Prospecting Right to incorporate the adjacent block into the Ferreira Coal Mine’s existing mine plan. A 15 hole exploration and resource confirmation drill program has been finalised and drilling has commenced. The Company is proposing to commence development of the Prospecting Right once relevant approvals have been obtained.
The Company lodged a Section 102 Application with the Department of Minerals and Resources in September 2011 to allow it to conduct mining activities on the Prospecting Right.
Mining activities at the Ferreira Coal Mine will extend from the current open cast operations across and into the Prospecting Right. Mining on the Prospecting Right of between 350,000 to 400,000 ROM tonnes is forecast to be completed in approximately 8 months. The Company is pleased to also confirm that it is in further negotiations with additional parties to acquire further Prospecting Rights that are both contiguous to - and in close proximity to - the Ferreira Coal Mine on similar terms and will advise the market once these negotiations have been finalised.
Commenting on today’s update, Continental Coal Limited Chief Executive Officer, Don Turvey, said “I am very pleased to announce today’s update on our Ferreira Coal Mine, which I am sure will contribute to our future development and mining activities in the Ermelo area adding further value to our shareholder offering at a time when we are also bringing our third mine at Penumbra into production.”
For and on behalf of the Board.